坤集团(00924) - 2025 - 年度业绩

Annual Performance Overview Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended June 30, 2025, Khoon Group Limited reported significant changes in revenue, gross profit, and loss for the year compared to the prior period Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Revenue | 77,663,858 | 69,506,635 | | Cost of services | (72,516,420) | (63,615,918) | | Gross profit | 5,147,438 | 5,890,717 | | Other income | 682,908 | 283,128 | | Other gains and losses | (410,354) | (662,856) | | Impairment losses on financial assets and contract assets | (1,949,377) | (790,663) | | Administrative expenses | (5,442,812) | (4,415,795) | | Finance costs | (26,810) | (10,116) | | Loss / (profit) before tax | (1,999,007) | 294,415 | | Income tax expense | (110,155) | (303,311) | | Loss for the year attributable to owners of the Company | (2,109,162) | (8,896) | | Other comprehensive income / (loss) for the year | 189,850 | (226,015) | | Total comprehensive loss for the year attributable to owners of the Company | (1,919,312) | (234,911) | Consolidated Statement of Financial Position As of June 30, 2025, the Group's net assets slightly decreased, primarily due to reduced net current assets, alongside a decrease in non-current liabilities Key Data from Consolidated Statement of Financial Position | Metric | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | ASSETS | | | | Total non-current assets | 762,585 | 914,310 | | Total current assets | 47,261,911 | 51,512,969 | | LIABILITIES | | | | Total current liabilities | 13,559,782 | 15,897,856 | | Total non-current liabilities | 209,988 | 355,385 | | EQUITY | | | | Net assets | 34,254,726 | 36,174,038 | | Equity attributable to owners of the Company | 34,254,726 | 36,174,038 | Loss Per Share For the year ended June 30, 2025, the company's basic and diluted loss per share significantly widened compared to the prior year Loss Per Share | Metric | 2025 (Singapore Cents) | 2024 (Singapore Cents) | | :--- | :--- | :--- | | Basic loss per share | (0.21) | –* | | Diluted loss per share | (0.21) | –* | * Refers to less than (0.01) Singapore Cents - Diluted loss per share is the same as basic loss per share because the Group had no dilutive potential ordinary shares during the reporting year[34] Dividends For the year ended June 30, 2025, the company did not pay, declare, or propose any dividends, consistent with the prior year - As of the year ended June 30, 2025, no dividends were paid, declared, or proposed to the owners of the Company or Group entities (2024: zero SGD)[32] Notes to the Consolidated Financial Statements General Information Khoon Group Limited, registered in the Cayman Islands in 2018 and listed on the HKEX in 2019, primarily provides electrical engineering services, with Southern Heritage Limited as its ultimate holding company - Khoon Group Limited was incorporated in the Cayman Islands on July 24, 2018, and listed on the Main Board of the HKEX from July 5, 2019[6] - The Company is an investment holding company, and its Singapore operating subsidiary, Khoon Engineering Contractor Pte. Ltd., primarily provides electrical engineering services[7] - The Company's ultimate holding company is Southern Heritage Limited, wholly owned by Mr. Tan Chee[7] Basis of Preparation The consolidated financial statements are prepared in accordance with applicable International Financial Reporting Standards and comply with HKEX Listing Rules and Companies Ordinance disclosure requirements - The consolidated financial statements are prepared in accordance with all applicable International Financial Reporting Standards issued by the International Accounting Standards Board[9] - The financial statements also comply with the applicable disclosure provisions of the HKEX Listing Rules and the disclosure requirements of the Companies Ordinance[9] Adoption of New and Revised International Financial Reporting Standards The Group adopted several IFRS amendments effective July 1, 2024, with no significant impact on prior periods, while IFRS 18 on financial statement presentation is being evaluated for its potential impact - The Group has initially applied a number of amendments to International Financial Reporting Standards that are mandatorily effective for annual periods beginning on or after July 1, 2024[10] - Issued but not yet effective International Financial Reporting Standard 18 "Presentation and Disclosure in Financial Statements" will replace IAS 1, making significant adjustments to the presentation of financial statements, focusing on financial performance information presented in the statement of profit or loss[14] - The Directors are evaluating the impact of applying International Financial Reporting Standard 18 on the presentation and disclosure of the Group's consolidated financial statements[15] Revenue and Segment Information The Group's revenue primarily derives from electrical engineering services in Singapore, totaling SGD 77,663,858 in 2025, mainly from public sector clients, with significant remaining performance obligations - Revenue refers to the fair value of consideration received and receivable for providing electrical engineering services recognized over time, primarily including assistance in obtaining statutory approvals, customization and/or installation of electrical systems, and testing and commissioning services[16] Revenue Analysis | Revenue Source | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Contract revenue recognized over time from electrical engineering services | 77,663,858 | 69,506,635 | | Of which from public sector clients | 77,519,079 | 68,720,958 | | Of which from private sector clients | 144,779 | 785,677 | Transaction Price Allocated to Remaining Performance Obligations | Period | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Within one year | 66,504,220 | 81,571,189 | | More than one year but not more than two years | 32,856,159 | 29,365,753 | | More than two years but not more than five years | 30,104,771 | 5,908,624 | | More than five years | 2,642,447 | – | | Total | 132,107,597 | 116,845,566 | - The Group primarily operates in Singapore, with 100% of its revenue derived from Singapore for the year ended June 30, 2025 (2024: 100%)[24] Major Customer Information In 2025, Clients I, II, and III were the Group's major customers, with Client I's revenue contribution significantly increasing, while Client IV was no longer a major customer Major Customer Revenue Contribution | Client | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Client I | 15,634,730 | 8,864,073 | | Client II | 14,612,896 | N/A* | | Client III | 8,311,134 | N/A* | | Client IV | N/A* | 9,430,019 | * Revenue from this client did not account for 10% or more of the Group's total revenue Other Income, Gains and Losses Other income significantly increased in 2025 due to direct material sales and government grants, while other losses decreased, but impairment losses on financial and contract assets substantially rose Other Income | Income Source | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Bank interest income | 125,078 | 98,444 | | Government grants | 205,072 | 34,471 | | Training income | 5,781 | 30,660 | | Direct material sales | 322,484 | 114,868 | | Others | 24,493 | 4,685 | | Total | 682,908 | 283,128 | - Government grants in 2025 primarily included Career Transition Programme grants from the Singapore Workforce Development Agency, supporting entities to reskill Singaporean employees[25] Other Gains and Losses | Item | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Gain on disposal of property, plant and equipment | – | 60,617 | | Write-off of trade receivables | – | (537,198) | | Write-off of contract assets | – | (433,563) | | Net foreign exchange (loss) / gain | (410,354) | 247,288 | | Total | (410,354) | (662,856) | Impairment Losses on Financial Assets and Contract Assets | Item | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Trade receivables | (185,959) | (730,663) | | Contract assets | (1,763,418) | (60,000) | | Total | (1,949,377) | (790,663) | Finance Costs and Income Tax Expense Finance costs increased in 2025 due to higher lease liabilities, while income tax expense decreased due to reduced taxable profit Finance Costs | Item | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Interest on lease liabilities | 26,810 | 10,116 | Income Tax Expense | Item | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Provision for corporate income tax for the year | 110,155 | 303,311 | - Corporate income tax is calculated at 17% of estimated taxable profit, with partial exemptions for Singapore-registered companies[29] - No income tax was recognized for British Virgin Islands and Hong Kong-registered subsidiaries as they had no taxable profit during the reporting year[30] Components of Loss for the Year The Group's loss for the year was primarily influenced by depreciation of property, plant and equipment, right-of-use assets, impairment losses on trade and contract assets, auditor's remuneration, material costs, and subcontracting costs Items Deducted in Loss for the Year | Item | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 88,366 | 105,480 | | Depreciation of right-of-use assets | 442,302 | 208,429 | | Impairment loss on trade receivables | 185,959 | 730,663 | | Impairment loss on contract assets | 1,763,418 | 60,000 | | Auditor's remuneration | 166,000 | 166,000 | | Material costs recognized as cost of services | 37,365,841 | 32,861,263 | | Subcontracting costs recognized as cost of services | 25,936,530 | 22,424,163 | Trade and Other Receivables Total trade receivables decreased to SGD 7,493,166 in 2025, with a typical credit period of 30 to 35 days, and impairment loss provisions increased to SGD 969,991 Trade Receivables | Item | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Trade receivables | 8,463,157 | 10,406,559 | | Less: Provision for impairment losses | (969,991) | (784,032) | | Net | 7,493,166 | 9,622,527 | - The Group typically grants credit terms of 30 to 35 days from the invoice date for trade receivables due from all customers[36] Aging Analysis of Trade Receivables (Net of Impairment Loss Provisions) | Aging | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Within 30 days | 4,610,462 | 7,724,045 | | 31 to 60 days | 1,500,931 | 503,823 | | 61 to 90 days | 556,129 | 806,451 | | 91 to 120 days | 168,542 | 22,815 | | Over 120 days | 657,102 | 565,393 | | Total | 7,493,166 | 9,622,527 | Movement in Provision for Impairment Losses on Trade Receivables | Item | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Balance at beginning of year | 784,032 | 53,369 | | Impairment losses recognized during the year | 185,959 | 730,663 | | Balance at end of year | 969,991 | 784,032 | Contract Assets and Liabilities Net contract assets decreased to SGD 28,845,345 in 2025, primarily due to reduced retention receivables and unbilled revenue, with a significant increase in impairment losses for specific customers, while contract liabilities increased Analysis of Contract Assets and Liabilities Balances | Item | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Contract assets | 30,791,162 | 33,950,755 | | Less: Provision for impairment losses | (1,945,817) | (182,399) | | Net contract assets | 28,845,345 | 33,768,356 | | Contract liabilities | (258,746) | (51,846) | | Total | 28,586,599 | 33,716,510 | Composition of Contract Assets | Item | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Retention receivables | 12,584,486 | 9,112,975 | | Others (unbilled revenue) | 18,290,697 | 24,928,982 | | Less: Provision for impairment losses | (1,945,817) | (182,399) | | Total | 28,929,366 | 33,859,558 | - Changes in contract assets are primarily driven by the amount of retention receivables and the scale and quantity of completed but uncertified contract works[45] Movement in Provision for Impairment Losses on Contract Assets | Item | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Balance at beginning of year | 182,399 | 822,399 | | Impairment losses recognized during the year | 1,763,418 | 60,000 | | Impairment provision written off | – | (700,000) | | Balance at end of year | 1,945,817 | 182,399 | - For the year ended June 30, 2025, the loss provision significantly increased, mainly due to a substantial increase in credit risk for three specific customers, resulting in an impairment provision expense of SGD 1,763,418[49] Contract Liabilities Analysis | Item | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Total contract liabilities | 342,767 | 143,048 | | Revenue recognized in contract liabilities balance at beginning of year | 143,048 | 342,562 | Trade and Other Payables Total trade and other payables decreased to SGD 12,571,551 in 2025, with trade payables typically having a 30 to 90-day credit period, and retention payables to subcontractors being interest-free Composition of Trade and Other Payables | Item | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Trade payables | 6,628,767 | 8,623,132 | | Trade accruals | 1,602,276 | 2,261,331 | | Retention payables | 3,485,416 | 3,343,394 | | Salaries, CPF and MPF payables | 368,731 | 336,024 | | Goods and services tax payables | 288,235 | 214,247 | | Accrued audit fees | 166,000 | 166,000 | | Other payables | 32,126 | 65,583 | | Total | 12,571,551 | 15,009,711 | - Retention payables to subcontractors are interest-free and are paid upon the expiry of the warranty period or according to the terms of the relevant contracts (generally within 12 months after the completion of the relevant works)[52] Aging Analysis of Trade Payables | Aging | 2025 (SGD) | 2024 (SGD) | | :--- | :--- | :--- | | Within 30 days | 2,840,879 | 3,671,211 | | 31 to 60 days | 2,919,793 | 2,974,373 | | 61 to 90 days | 521,149 | 1,482,970 | | 91 to 120 days | 84,993 | 345,641 | | Over 120 days | 261,953 | 148,937 | | Total | 6,628,767 | 8,623,132 | Share Capital The company's authorized share capital is 1,500,000,000 shares at HKD 0.01 each, with 1,000,000,000 issued and fully paid shares amounting to SGD 1,742,143, and management regularly reviews the capital structure Share Capital Information | Item | 2025 | 2024 | | :--- | :--- | :--- | | Authorized share capital (number of shares) | 1,500,000,000 | 1,500,000,000 | | Authorized share capital (HKD) | 15,000,000 | 15,000,000 | | Issued and fully paid share capital (number of shares) | 1,000,000,000 | 1,000,000,000 | | Issued and fully paid share capital (SGD) | 1,742,143 | 1,742,143 | - The Group's capital structure comprises equity attributable to owners of the Group, including issued share capital, reserves, and accumulated profits[55] - Management regularly reviews the capital structure, considering the cost of capital and associated risks, and balances the overall capital structure through dividend payments, new share issues, and new debt[55] Management Discussion and Analysis Business Review Khoon Group, a Singaporean M&E contractor with over 30 years of experience, saw 2025 revenue grow 11.7% to SGD 77.7 million, but gross profit declined 12.6% to SGD 5.1 million, and net loss widened to SGD 2.1 million - The Group is a Singaporean M&E engineering contractor specializing in providing electrical engineering solutions, with services including customization and/or installation of electrical systems, assistance in obtaining statutory approvals, and testing and commissioning[56] - The Group has a solid track record in undertaking electrical engineering works for public residential development projects initiated by the Housing & Development Board[56] Business Review Key Financial Data | Metric | 2025 (million SGD) | 2024 (million SGD) | Change | | :--- | :--- | :--- | :--- | | Revenue | 77.7 | 69.5 | 11.7% | | Gross profit | 5.1 | 5.9 | -12.6% | | Gross margin | 6.6% | 8.5% | -1.9 percentage points | | Loss for the year | (2.1) | –* | N/A | * Refers to less than (0.1) million SGD Outlook Singapore's construction demand is projected to be SGD 47-53 billion in 2025 and SGD 39-46 billion annually from 2026-2029, with the Group holding 28 projects valued at SGD 235.5 million, positioning it to capitalize on future demand - The Building and Construction Authority of Singapore forecasts construction demand between SGD 47 billion and SGD 53 billion in 2025, and an annual total construction demand of SGD 39 billion to SGD 46 billion from 2026 to 2029[58] - As of June 30, 2025, the Group had 28 projects on hand with a nominal or estimated contract value of approximately SGD 235.5 million[59] - The Board believes that, given the Group's expertise in public sector projects, it is well-positioned to capitalize on the increasing construction demand in the coming years[58] Financial Review This section details the Group's financial performance, including revenue growth, decreased gross profit and margin, increased other income, higher impairment losses, increased administrative and finance costs, and an expanded loss for the year Revenue Total revenue increased by 11.7% to SGD 77.7 million in 2025, driven by increased construction demand in Singapore, with public sector projects contributing the majority of revenue - The Group's operating activities involve providing electrical engineering services for public and private sector projects, primarily new building developments, redevelopment, additions and alterations, and upgrading projects[61] Revenue Contribution by Project Type | Project Type | 2025 Project Count | 2025 Revenue (million SGD) | 2025 % of Total Revenue | 2024 Project Count | 2024 Revenue (million SGD) | 2024 % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Public sector projects | 89 | 77.5 | 99.8 | 64 | 68.7 | 98.9 | | Private sector projects | 8 | 0.2 | 0.2 | 56 | 0.8 | 1.1 | | Total | 97 | 77.7 | 100.0 | 120 | 69.5 | 100.0 | - Total revenue increased by approximately SGD 8.2 million or 11.7%, mainly due to increased construction demand in Singapore[63] Cost of Services Cost of services increased by 14.0% to SGD 72.5 million in 2025, primarily due to higher labor, material, and subcontracting costs - Cost of services increased by approximately SGD 8.9 million or 14.0%, primarily due to higher labor and material costs and subcontracting costs[64] Gross Profit and Gross Margin Gross profit decreased by 12.6% to SGD 5.1 million, and the gross margin fell by 1.9 percentage points to 6.6%, mainly due to increased cost of services Gross Profit and Gross Margin Analysis | Project Type | 2025 Revenue (million SGD) | 2025 Gross Profit (million SGD) | 2025 Gross Margin (%) | 2024 Revenue (million SGD) | 2024 Gross Profit (million SGD) | 2024 Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Public sector projects | 77.5 | 5.5 | 7.2 | 68.7 | 5.8 | 8.5 | | Private sector projects | 0.2 | (0.4) | N/A | 0.8 | 0.1 | 9.5 | | Total | 77.7 | 5.1 | 6.6 | 69.5 | 5.9 | 8.5 | - Gross profit decreased by approximately 12.6%, and gross margin declined by 1.9 percentage points, mainly due to increased cost of services[65] Other Income Other income increased to SGD 0.7 million in 2025, primarily driven by higher direct material sales revenue - Other income primarily includes direct material sales revenue, bank interest income, government grants, training income, and miscellaneous income[66] - The increase in other income is attributable to higher revenue from direct material sales for the year ended June 30, 2025[66] Other Gains and Losses Other losses decreased to SGD 0.4 million in 2025, mainly due to no write-offs of trade and contract assets, though partially offset by foreign exchange losses - Other gains and losses include write-offs of trade receivables and contract assets, as well as net foreign exchange gains and losses[67] - The decrease in other losses was mainly due to no write-offs of trade receivables and contract assets in 2025 (2024: approximately SGD 1.0 million), but this effect was mitigated by foreign exchange losses of approximately SGD 0.4 million recognized in 2025 (2024: foreign exchange gains of approximately SGD 0.2 million)[67] Impairment Losses on Financial Assets and Contract Assets Impairment loss provisions increased to SGD 1.9 million in 2025, primarily due to additional provisions made based on expected credit loss assessments - The increase in impairment loss provisions was primarily due to additional provisions made for impairment losses on financial assets and contract assets arising from expected credit loss assessments[68] Administrative Expenses Administrative expenses increased to SGD 5.4 million in 2025, mainly due to higher staff costs - Administrative expenses increased by approximately SGD 1.0 million, mainly due to higher staff costs for the year ended June 30, 2025[69] Finance Costs Finance costs increased to SGD 27,000 in 2025, primarily due to an increase in lease liabilities during the year - The increase in finance costs was due to an increase in lease liabilities during the year, leading to higher finance costs[70] Income Tax Expense Income tax expense decreased to SGD 0.1 million in 2025, primarily due to a reduction in taxable profit - The change in income tax expense was primarily due to a decrease in taxable profit for the year ended June 30, 2025[71] Loss for the Year The loss for the year expanded to SGD 2.1 million in 2025, mainly due to increased impairment losses on financial and contract assets, higher staff costs, and a decline in gross margin - The change in loss for the year was primarily due to increased impairment losses on financial assets and contract assets, as well as higher staff costs[72] - A decline in gross margin also contributed to the change in net loss for the year[72] Trade Receivables Trade receivables amounted to SGD 7.5 million in 2025, with approximately 76.6% settled as of the announcement date - As of June 30, 2025, the Group's trade receivables were approximately SGD 7.5 million, of which approximately SGD 5.7 million (i.e., approximately 76.6%) had been settled as of the announcement date[73] Contract Assets Contract assets (excluding retention receivables) were SGD 16.3 million in 2025, with approximately 54.6% billed as of the announcement date, reflecting lengthy certification and billing processes for ongoing projects - As of June 30, 2025, the Group's contract assets (excluding retention receivables) were approximately SGD 16.3 million, of which approximately SGD 8.9 million (i.e., approximately 54.6%) had been billed as of the announcement date[74] - The certification and billing process for ongoing projects may take a long time (6 months to 1 year) as the Group requires additional time to perform extra procedures to verify the functionality of certain electrical engineering works[74] Final Dividend The Board does not recommend paying a final dividend for the year ended June 30, 2025, consistent with the prior year - The Board does not recommend paying a final dividend for the year ended June 30, 2025 (2024: zero SGD)[75] Liquidity, Financial Resources and Capital Structure The Group funds its operations, capital expenditures, and liquidity needs through cash, operating cash flows, and net proceeds from share offers, holding approximately SGD 10.0 million in cash with no bank borrowings as of June 30, 2025 - The Group funds its working capital, capital expenditures, and other liquidity needs through its cash and cash equivalents, cash flows generated from operations, and net proceeds from the share offer[76] - As of June 30, 2025, the Group had total bank balances and cash of approximately SGD 10.0 million (2024: approximately SGD 7.1 million)[77] - The Group had no bank borrowings as of June 30, 2025, and June 30, 2024[77] Pledge of Assets As of June 30, 2025, the Group had approximately SGD 74,000 in pledged deposits serving as collateral for performance guarantees - As of June 30, 2025, the Group had pledged deposits of approximately SGD 74,000 as part of collateral for performance guarantees in favor of the Group's clients[78] Financial Policies The Group adopts a prudent financial management approach, maintaining a sound financial position throughout the year, with the Board closely monitoring liquidity to meet funding requirements - The Group adopts a prudent financial management approach for its financial policies, thereby maintaining a sound financial position throughout the year[79] - The Board closely monitors the Group's liquidity position to ensure that the liquidity structure of its assets, liabilities, and other commitments can always meet its funding requirements[79] Foreign Exchange Risk Operating primarily in Singapore with most transactions in SGD, the Group faces foreign exchange risk from HKD-denominated bank balances, but this is not expected to significantly impact operating results, thus no hedging instruments are used - The Group primarily operates in Singapore, with most operating transactions and revenue settled in SGD[80] - As of June 30, 2025, the Group had certain HKD-denominated bank balances of approximately SGD 2.5 million, which may expose the Group to foreign exchange risk[80] - The Group does not expect this risk to have a significant impact on its operating results; therefore, no hedging instruments have been utilized[80] Gearing Ratio As of June 30, 2025, the Group's gearing ratio remained at zero, consistent with the prior year - As of June 30, 2025, the Group's gearing ratio was zero (as of June 30, 2024: zero)[81] Material Investments, Acquisitions and Disposals For the year ended June 30, 2025, the Group had no material investments in, or acquisitions or disposals of, subsidiaries, associates, or joint ventures - For the year ended June 30, 2025, the Group had no material investments in, or material acquisitions or disposals of, subsidiaries, associates, or joint ventures[82] Future Plans for Material Investments or Capital Assets As of June 30, 2025, the Group had no future plans for material investments or capital assets beyond those disclosed in the prospectus - Except for those disclosed in the Company's prospectus dated June 20, 2019, as of June 30, 2025, the Group had no other future plans for material investments or capital assets[83] Employees and Remuneration Policies As of June 30, 2025, the Group employed 208 staff with total staff costs of approximately SGD 10.0 million, and its remuneration policy is regularly reviewed to attract and retain high-quality talent - As of June 30, 2025, the Group employed a total of 208 employees (2024: 197 employees)[84] - Total staff costs for the year ended June 30, 2025, were approximately SGD 10.0 million (2024: approximately SGD 8.7 million)[84] - The Group's remuneration policies and benefits are regularly reviewed to attract and retain high-quality staff, offering on-the-job training, salary increments, and discretionary bonuses[84] Environmental Policies and Compliance Details regarding the Group's environmental policies, performance, and compliance will be provided in the 'Environmental, Social and Governance Report' within the upcoming 2024/2025 Annual Report - Details regarding environmental policies, performance, and compliance with laws and regulations will be included in the 'Environmental, Social and Governance Report' within the Company's forthcoming 2024/2025 Annual Report[85] Other Information Contingent Liabilities The Group faces contingent liabilities including performance bonds of SGD 1.9 million and an arbitration dispute with a client for approximately SGD 13.8 million, which the Group intends to defend and counterclaim - As of June 30, 2025, the Group had performance bonds of approximately SGD 1.9 million granted by insurance companies in favor of the Group's clients[86] - The Group is a respondent in an arbitration dispute with a client regarding a subcontracting agreement, with the client claiming a total of approximately SGD 13.8 million[87] - The Group intends to defend against the claim and file a counterclaim against the client, as the Directors believe the claim lacks merit[88] Capital Expenditure and Commitments For the year ended June 30, 2025, the Group acquired property, plant, and equipment totaling approximately SGD 110,000, with no significant capital commitments as of the reporting date - For the year ended June 30, 2025, the Group acquired property, plant and equipment items totaling approximately SGD 110,000 (2024: approximately SGD 36,000)[89] - As of June 30, 2025, the Group had no significant capital commitments[90] Use of Net Proceeds from Share Offer Net proceeds from the share offer, approximately SGD 16.6 million, were fully utilized by December 31, 2024, for purposes including strengthening manpower, upfront costs and working capital, equipment acquisition, and ERP system upgrades - Net proceeds from the share offer, approximately HKD 95.0 million (equivalent to approximately SGD 16.6 million), were fully utilized by December 31, 2024[91][92] Use of Net Proceeds from Share Offer Details | Planned Use | Disclosed in Prospectus (million SGD) | Utilized as of June 30, 2025 (million SGD) | | :--- | :--- | :--- | | Acquisition of ME01 workhead | 7.1 | – | | Strengthening manpower | 2.5 | 1.0 | | Expansion of premises | 1.8 | – | | Upfront costs and working capital for existing projects | 1.7 | 5.2 | | Upfront costs and working capital for potential new projects | – | 7.1 | | Acquisition of additional machinery and equipment | 1.4 | 0.2 | | Purchase of BIM software and upgrade of ERP system | 0.9 | 0.5 | | Acquisition of additional lorries | 0.3 | 0.2 | | General working capital | 0.9 | 2.4 | | Total | 16.6 | 16.6 | Events After Reporting Period No significant events affecting the Group occurred after June 30, 2025, up to the announcement date, other than those disclosed under 'Contingent Liabilities' - Except for those disclosed in the 'Contingent Liabilities' section, no significant events affecting the Group occurred after the year ended June 30, 2025, up to the announcement date[94] Corporate Governance and Other Disclosures Corporate Governance For the year ended June 30, 2025, the company complied with the Corporate Governance Code provisions in Appendix C1 Part 2 of the HKEX Listing Rules and continues to enhance its practices - For the year ended June 30, 2025, the Company complied with the code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the HKEX Listing Rules[95] - The Company will continue to review and enhance its corporate governance practices to ensure compliance with the new Corporate Governance Code and align with the latest developments[95] Directors' Securities Transactions The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed full compliance for the 2025 financial year - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, as the code of conduct for securities transactions by Directors and relevant employees of the Group[96] - Following specific enquiries by the Company, all Directors confirmed their full compliance with the Model Code for the year ended June 30, 2025[96] Purchase, Sale or Redemption of the Company's Listed Securities or Sale of the Company's Treasury Shares For the year ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities or treasury shares, and no treasury shares were held as of June 30, 2025 - For the year ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities or sold any of its treasury shares[97] - As of June 30, 2025, the Company held no treasury shares[97] Audit Committee The Audit Committee reviewed the Group's audited financial results for the year ended June 30, 2025, discussing accounting principles and practices with management and auditors, with no disagreements - The Company's Audit Committee reviewed the Group's audited financial results for the year ended June 30, 2025, and discussed the accounting principles and practices adopted by the Group with the Company's management and auditors, with no disagreements from the Audit Committee or the auditors[98] Board Composition As of the announcement date, the Board comprises two executive directors (Mr. Ang Wee Keng, Mr. Ang Kok Kwang) and three independent non-executive directors (Ms. Leong Wing Chee, Mr. Fok Wai Hung, Mr. So Chi Kai) - As of the announcement date, the Board comprises two executive directors (Mr. Ang Wee Keng and Mr. Ang Kok Kwang) and three independent non-executive directors (Ms. Leong Wing Chee, Mr. Fok Wai Hung, and Mr. So Chi Kai)[98]